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20-09-2017
Mathematics

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Sue now has $125. how much would she have after 7 years if she leaves it invested at 8.5% with annual compounding?

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apologiabiology apologiabiology

20-09-2017

the formula would be
[tex]A=P(1+r)^t[/tex]
A=final amount
P=present amount
r=rate in decaimal
t=time in years

ok,
P=125
r=8.5%=0.085
t=7

[tex]A=125(1+0.085)^7[/tex]
[tex]A=125(1.085)^7[/tex]
use calculator
A=221.268
round to nearet cent

A=$221.27

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